Jackie
I give all my Canadian customers 2 options to pay me, either in US or Cdn funds and I calculate the cost and provide them the choice in an email, so it is at the exchange rate of my choice. By giving them the choice, they cant complain about the exchange rate I use as they can pay in US funds and perhaps get a better rate when purchasing a US money order. About 90% of my Canadian customers pay me in Canadian funds using the totals I give them.
I have found that the eBay rate (not PayPal) is fairly close to the going rate of exchange and more often than not, more in my favour so I will use that but I am free to use whatever exchange rate I wish, as long as I give the customer the choice of paying in Canadian or US and I only make that ption available to my Canadian customers.
When they pay using PayPal, the full Canadian $ amount I quoted them goes into my Candian $ PayPal account. There is no conversion of funds by PayPal. When I withdraw funds from my Canadian $ PayPal account, thoses funds are transferred into my Canadian bank account. Again no conversion of funds.
Each time I look at my PayPal account balances, I have 2 seperate accounts, one in Canadian finds and one in US funds. They do not convert anything unless I was making a purchase using PayPal and didnt have enough in my US account to pay for a US $ purchase.
What you would do therefore Jackie is set up a Canadian $ bank account with PayPal in addition to your US $ account with PayPal and without any converting of monies, they will automatically credit your Canadian account with Canadian $ payments and vice versa with the US.
You will have to give them banking info for your Canadian bank account. After that you transfer your Canadian funds from PayPal to your Canadian bank and your US funds to your US bank (just as you are doing now).
I did all of this backwards at the beginning and that is how I learned. I set up only the Canadian acct at my bank and had all PayPal funds converted all the time when depositing to my Canadian acct for the first month.
Now I control the rates I have funds converted by leaving my US $ in the US at my bank there until I can get a better rate on moving them here and I have already received the optimum conversion on selling in Canadian funds by setting out to my customers what they would pay me in Canadian $ for their purchase.
Hope this helps.
You know, if it helps your sales do it, if it doesnt then just keep doing it the way your have been selling. You know the old saying, if it aint broke, why fix it?
I deal in fairly big ticket items so the conversion rate used per unit sold can affect me greatly and while the exchange rate has been hurting my profits at the sales level, I get a bit of a break because I pay a bit less for my imported merchandise.
Malcolm